Contrasting Cango (NYSE:CANG) and Cheetah Mobile (NYSE:CMCM)

Risk and Volatility

Cango has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Cheetah Mobile has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500.

Profitability

This table compares Cango and Cheetah Mobile’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cango	51.90%	3.55%	3.02%
Cheetah Mobile	N/A	N/A	N/A

Valuation and Earnings

This table compares Cango and Cheetah Mobile”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cango	$804.49 million	0.57	-$5.33 million	$0.37	11.28
Cheetah Mobile	$737.10 million	0.20	-$84.92 million	N/A	N/A

Cango has higher revenue and earnings than Cheetah Mobile.

Institutional and Insider Ownership

4.2% of Cango shares are owned by institutional investors. Comparatively, 0.4% of Cheetah Mobile shares are owned by institutional investors. 29.1% of Cango shares are owned by insiders. Comparatively, 17.1% of Cheetah Mobile shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Cango beats Cheetah Mobile on 8 of the 9 factors compared between the two stocks.

About Cango

Cango Inc. operates an automotive transaction service platform that connects dealers, original equipment manufacturers, financial institutions, car buyers, insurance brokers, and companies in the People's Republic of China. The company offers automobile trading solutions comprising car sourcing, transaction facilitation, logistics, and warehousing support for dealers through Cango Haoche app that offers new car transaction services, and Cango U-Car app that offers used-car transaction services. It also provides automotive financing facilitation services that include facilitating financing transactions from financial institutions to car buyers, which comprises credit origination, credit assessment, credit servicing, and delinquent asset management services; facilitating financing transactions of car purchases for car buyers; and after-market services to car buyers, which includes facilitating the sale of insurance policies from insurance brokers or companies. The company was founded in 2010 and is headquartered in Shanghai, the People's Republic of China.

About Cheetah Mobile

Cheetah Mobile Inc. along with its subsidiaries, engages in provision of internet services, artificial intelligence, and other services in the People's Republic of China, Hong Kong, Japan, and internationally. The company's internet products include Duba Anti-virus, an internet security application to protect users against known and unknown security threats and malicious applications; and Clean Master, a junk file cleaning, memory boosting, and privacy protection tool for mobile devices. It also offers value-added products, such as PC and mobile products, as well as wallpaper, office optimization software, and others; E-Coupon vending robot, a delivery and reception robot, which includes marketing campaigns and services; and multi-cloud management platform and overseas advertising agency service. In addition, the company provides mobile advertising services; duba.com personal start page that aggregates online resources and provides users access to their online destinations, such as online shopping, video, online game, travel, and local information; artificial intelligence and other services; and premium membership services. It serves mobile advertising networks and partners, e-commerce companies, mobile application developers, and mobile game developers, as well as individual customers. The company was formerly known as Kingsoft Internet Software Holdings Limited and changed its name to Cheetah Mobile Inc. in March 2014. Cheetah Mobile Inc. was incorporated in 2009 and is based in Beijing, the People's Republic of China.